Securities and Exchange Commission (SEC) Commissioner Hester Peirce has stated that many of the meme coins currently circulating may not fit within the SEC’s regulatory framework.
Her comments come amid increased interest in meme coins. This is fueled in part by the launch of President Donald Trump’s official meme coin, TRUMP.
Hester Peirce Clarifies Meme Coin Regulation
In an interview with Bloomberg, Peirce addressed concerns about the regulatory framework for meme coins. When asked whether the launch of meme coins by prominent figures, such as the President and the First Lady, complicates the SEC’s role, Peirce emphasized the agency’s existing limitations.
She explained that the SEC is evaluating various categories of tokens, highlighting the rapid proliferation of meme coins.
“Facts and circumstances matter. We always have to look at the facts and circumstances but many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations,” she stated.
Peirce suggested that the jurisdictional issue may require action from other entities. Regarding this, she pointed to Congress or the Commodity Futures Trading Commission (CFTC).
Nate Geraci, president of the ETF Store, echoed Peirce’s sentiment.
“Meme coins [are] more akin to collectibles, IMO,” Geraci posted on X (formerly Twitter).
Peirce was recently appointed to lead the SEC’s new crypto task force. Despite being dubbed “Crypto Mom,” she made it clear that she does not view herself as an advocate for the industry.
“I don’t describe myself as an advocate of the industry. I’m a freedom maximalist,” Peirce stated.
She also expressed frustration with the SEC’s approach to crypto, criticizing the use of regulation to hinder innovation. She drew attention to the agency’s flexible regulatory framework. Yet, the SEC commissioner noted that it has created roadblocks for those trying to engage with the SEC.
She called for an innovation policy that supports experimentation and new ideas. This, Peirce noted, should apply not just to crypto but also to other sectors. She emphasized that the government should serve the American people, not stifle their efforts to innovate.
Meanwhile, the meme coin market has taken a dip. At the time of writing, the total meme coin market capitalization stood at $75.6 billion. This reflected a 1% decline in the past 24 hours.
All top 10 meme coins registered losses, with Pudgy Penguins (PENGU) and Dogwifhat (WIF) leading the downturn.
That’s not all. In a previous report, BeInCrypto highlighted that celebrity meme coins have seen notable declines. This is because investors appear to be shifting their attention to projects with tangible real-world value.
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